SIE (Securities Industry Essentials) Practice Exam 2025 – All-in-One Resource to Excel in Your Certification!

Question: 1 / 400

A letter of intent signed by a client investing in a mutual fund for a reduced sales load allows how many months to comply with the breakpoint level?

6 months

13 months

A letter of intent is a document that allows an investor to gradually increase their investment over time, thus gaining access to reduced sales load fees. This is known as reaching the breakpoint level. Given the options provided, the best choice would be to allow 13 months for the investor to reach the breakpoint level. A is incorrect because 6 months is too short of a time frame, and it may not be realistic for an investor to reach the breakpoint at such a short notice. C and D are incorrect because 24 and 18 months, respectively, are too long of a time frame and do not align with the general purpose of a letter of intent, which is to gradually increase investment over time. B, at 13 months, strikes a balance between a realistic time frame and the purpose of a letter of intent.

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24 months

18 months

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